Which agreements with competitors or resellers are legally risky?

Competition and antitrust law prohibits agreements that restrict competition. Some conduct is treated as inherently unlawful in both the US and Canada — most clearly agreements between competitors to fix prices, allocate markets or customers, or rig bids, which carry criminal exposure. Other arrangements, such as exclusive dealing or territorial restrictions with distributors, are assessed by their competitive effect.

What to do next

Treat competitor contact as high risk
Price, output, bidding, and customer allocation should never be discussed with competitors — including informally at trade events or in industry groups. This is the conduct that attracts criminal penalties.
Review distribution and reseller terms
Exclusivity, territorial limits, tying, and resale pricing arrangements are generally assessed on their effects and market position, but can still cross the line. Have them reviewed rather than copied from another company's template.
Get advice before deals and expansions
Mergers above certain thresholds require pre-notification in both countries. Compliance training and a clear internal policy are far cheaper than an investigation.

Frequently asked questions

Is agreeing on prices with a competitor really criminal?

Price-fixing, market allocation, and bid-rigging between competitors attract the most serious treatment in both countries, including criminal exposure. There is no informal version of this that is safe.

Can I tell resellers what price to charge?

Resale pricing practices are scrutinized and treated differently across jurisdictions. Get advice before imposing or pressuring on resale prices.

Are exclusive distribution agreements allowed?

Often yes, but they are assessed by their competitive effect and your market position. Exclusivity by a dominant firm draws far more scrutiny.

Do we need clearance for an acquisition?

Possibly. Both countries require pre-merger notification above defined thresholds, and closing without required clearance carries penalties.

This is general information, not legal advice. Laws vary by location and every situation is different — speak with a qualified lawyer about your specific circumstances.